Posts tagged ‘Land Registry’
House prices jumped by 1 per cent in August defying signs that the property market was beginning to slow down, figures showed today.
Strong gains in London continued to drive the rest of the property market, with house prices in the capital soaring by 2.7 per cent to stand at £467,070, 21.6 per cent higher than a year ago, according to the Land Registry.
The housing boom is rippling out from London to other parts of the country, with the South East posting growth of 1.7 per cent, while prices were 1.6 per cent higher in Yorkshire and Humberside and 1.5 per cent up in the East.
But growth remained subdued in other regions, with property values creeping ahead by just 0.1 per cent in both the South West and North West, and by 0.2 per cent in the West Midlands.
Meanwhile, more than 37 properties a day changed hands for more than £1m in June, the latest month for which data is available.
A total of 1,135 homes were sold for at least seven figures during the month.
The Land Registry data comes as Governor of the Bank of England Mark Carney warned that the point at which interest rates would start to rise from their current record low of 0.5 per cent was “getting closer”.
Speaking at a conference, Carney said leaving interest rates low for too long could lead to other risks building up in the economy, with the housing market currently posing the biggest threat.
He said: “Relative to the recent past, the economic outlook is much improved.
“While there is always uncertainty about the future, you can expect interest rates to begin to increase.”
But he added that when rates did start to increase it would gradual, and the Bank Rate was likely to peak at below pre-crisis levels.
Economists expect the first increase in interest rates to be made in early 2015, although two members of the Bank’s Monetary Policy Committee have already voted for an increase.
For homeowners who are keen to lock into low interest rates, there are a number of competitive mortgage deals on the market.
Norwich and Peterborough Building Society has a two-year fixed rate deal at 1.89 per cent for people with a 35 per cent deposit who pay a £195 fee.
Those who want the security of a longer deal can get a five-year fixed rate loan at 2.89 per cent from Yorkshire Building Society, which comes with a £975 fee.
Today’s Land Registry figures contradict growing evidence that the housing market is beginning to slow down, although the Land Registry data, which is based on completed sales, tends to lag other indexes.
Mortgage lender Halifax said property values crept ahead by just 0.1 per cent in August, while the annual rate of growth also slowed.
Data from the British Bankers’ Association also showed a 3 per cent fall in the number of mortgages approved for house purchase in the month, compared with July.
Strong house price gains have left the average British home cost £265,022, according to Zoopla.
House price growth stalled during June as potential buyers adopted a more cautious approach, figures showed today.
The average cost of a home in England and Wales was unchanged during the month at £172,011, according to the Land Registry.
The annual rate at which house prices are rising also slowed to 6.4 per cent during the month, down from 6.7 per cent in May.
The slowdown in growth comes as separate research showed a steep fall in confidence among potential buyers in the face of high house prices and future interest rate hikes.
A balance of just 5 per cent of people thought it was a good time to buy a home at the end of the second quarter, down from 34 per cent in the previous three months, according to Halifax.
The group said the fall in confidence was the largest recorded since it started collecting the data in 2011.
Around 55 per cent of potential buyers said raising a deposit was the biggest barrier preventing them from getting on to the housing ladder, while 35 per cent sited high house prices and 18 per cent admitted they were worried about future interest rate rises.
But while buyers are now cautious, there was an increase in confidence among potential sellers, with a balance of 25 per cent thinking it was a good time to put a property on the market – the highest level ever recorded by the index.
Both groups also remained optimistic about future property price growth, with a balance of 66 per cent predicting further price rises.
The Land Registry data showed that London continued to enjoy the highest house price growth of 16.4 per cent year-on-year, but this was down from 17.8 per cent in May.
Growth was also strong in the East and South East at 7.8 per cent and 7.9 per cent respectively.
But on a monthly basis, house prices fell in seven regions, with Yorkshire and the Humber seeing the biggest drop of 1.3 per cent, while prices fell by 1 per cent in both the East Midlands and North East.
Even in London, which has been the main driving force for the market, prices edged ahead by just 0.1 per cent during June.
Evidence that the housing market is beginning to slow down naturally will help to further ease concerns that a property price bubble had been building up, particularly in London.
Strong price growth had caught the attention of policymakers and led to the Bank of England introducing measures to help calm the market.
But recent data has suggested some of the heat has started to come out of the market as more people put homes up for sale, helping to ease the supply shortage.
At the same time, potential buyers have become more cautious in the face of high house prices and speculation about when interest rates will start to rise.
Peter Rollings, chief executive of Marsh & Parsons, said:“After a frenetic start to the year, the pace of house price growth has slowed this quarter as the market stabilises and returns to more normal trading conditions.
“With more choice coming onto the market, sellers are able to find their next onward purchase and consider trading up.”
Despite suggestions that the market is slowing, a total of 1,028 homes worth more than £1m changed hands during April, the latest month for which Land Registry transaction data is available, the equivalent of 34 a day.
Recent strong house price growth has left the average UK home costing £260,311, according to Zoopla.
House prices in England and Wales jumped by 1.5 per cent during April – the biggest monthly increase for more than four years, figures showed today.
The gain, which was the biggest since January 2010, left the average home costing £172,069, only slightly below the peak of £181,572 reached in November 2007, before the property market correction struck.
The annual rate at which property values are appreciating also accelerated, with house prices rising 6.7 per cent in the 12 months to the end of April.
This figure is up from a year-on-year gain of 5.8 per cent in March, according to the Land Registry.
But the headline figure continues to be driven by strong price growth in London, with the average cost of a home in the capital soaring by 17 per cent during the past year – the steepest increase for more than a decade.
The gain left the typical home costing a record £435,034, a massive £63,172 increase compared with April 2013.
Prices in the capital jumped by 4.2 per cent during April alone, the highest monthly increase ever recorded, adding £17,645 to property values.
London was the only region of England and Wales to report double-digit annual price gains, with the East and South East seeing the next highest growth at 7.8 per cent and 7.5 per cent respectively.
But the North West enjoyed a strong monthly gain of 3 per cent, while in Wales prices rose by 2.9 per cent in April and in Yorkshire and the Humber they were up 2.3 per cent.
At the other end of the scale, property values fell by 1.9 per cent in North East during the month, pushing the average cost of a home in the region back below the £100,000 mark to £99,001.
Across England and Wales, activity levels remained high, with 62,368 sales completed during February – the latest month for which figures are available, 38 per cent more than in the same month of 2013.
Nearly 30 properties changed hands for more than £1m every day during the month, two-thirds more than a year earlier.
Today’s strong figures are likely to reignite concerns that a bubble could be building up in the property market.
But other data has indicated that activity in the housing market may be beginning to slow down.
Figures from the British Bankers’ Association showed that the number of mortgages approved for house purchase fell for the third consecutive month during April.
Peter Rollings, chief executive of Marsh & Parsons, said: “House price rises may have grabbed the headlines this year – but double-digit annual increases are not sustainable, and as the market self-regulates itself, sellers and estate agents need to adjust their price expectations accordingly.
“In the past six weeks, we have seen the wind change in the property landscape, restoring a new calm and steadiness to the market.
“Property prices have plateaued as more property has come onto the market. However, demand continues to outweigh supply, in what is still a seller’s market.”
House prices rose at their fastest pace for nearly four years during March, official figures showed today.
The average cost of a home in England and Wales increased by 5.6 per cent in the year to the end of March, the highest rate of annual growth since August 2010, according to the Land Registry.
But values dipped slightly during the month itself, falling by 0.4 per cent to leave the average home costing £169,124.
The London market continued to be the main driver of growth, with house prices in the capital soaring by 12.4 per cent year-on-year to reach a new record high of £414,490.
Growth was also strong in the East, with prices rising by 7.1 per cent in the 12 months to the end of March and the South East at 6.1 per cent.
But at the other end of the scale prices fell by 1.6 per cent in Wales year-on-year and they edged ahead by just 1.8 per cent in Yorkshire and the Humber.
Five regions also reported monthly price falls, with Wales recording a drop of 4.2 per cent, followed by the North West at 1.8 per cent.
Prices also fell in the East Midlands, Yorkshire and the Humber and the South East.
On a brighter note, sales levels continued to rebound with 63,123 homes changing hands during January, the latest month for which figures are available, 46 per cent more than in January 2013. Within this total, 1,011 properties sold for £1m-plus, a 61 per cent jump year-on-year.
The number of properties that were repossessed also continued to fall, dropping by 31 per cent compared with a year earlier to stand at 979 in January.
David Brown, commercial director of LSL Property Services, said: “Price rises may have slowed slightly, but this isn’t a backwards step for the market.
“Year-on-year house price growth remains strong and buyer sentiment is high.
“In terms of volumes, the UK property market continues to show significant and sustained growth.”
There has been a run of strong data on the property market in recent weeks, as a combination of strong demand and a shortage of homes being put up for sale has driven prices higher.
But today’s figures showing a month-on-month fall are likely to ease concerns that a bubble may be building up in the market.
They follow data from the British Bankers’ Association showing that the number of mortgages approved for house purchase fell for two consecutive months during February and March.
Housing intelligence group Hometrack also recently said there were signs of growing price resistance among buyers in London, which could slow the rate of house price appreciation in the coming months.
The cost of a home in London hit a new record high in February as house prices continued to race ahead, figures showed today.
The average value of a property in the capital surged by 13.8 per cent during the 12 months to the end of February, to stand at £414,356 – the highest level ever recorded.
Across England and Wales as a whole property prices rose by 5.3 per cent during the same period, to leave a typical home costing £170,000, according to the Land Registry.
But there were significant regional variations in house price performance.
London led the charge, followed by the South East, which recorded annual house price of growth of 7.1 per cent, leaving the average home costing £223,733, and the East, where prices were 6.2 per cent higher year-on-year at £183,285.
But at the other end of the scale, properties prices in the North East fell by 1.3 per cent during the 12 months, with the average home costing £97,332 at the end of February.
In Yorkshire and the Humber and Wales, prices edged ahead by just 1.2 per cent and 1.7 per cent respectively.
Sales levels across England and Wales continued to rebound, with 75,182 homes changing hands in December, the latest month for which figures are available, 33 per cent more than in the same month of 2012.
Within this total, the number of homes sold for more than £1 million soared by 44 per cent to 898.
There was also a 24 per cent drop in repossessions, with 966 homes taken back by lenders during December, down from 1,278 in the same month of 2012.
Nicholas Ayre, managing director of homebuying agency Home Fusion, said: “The gulf in property prices across the UK grows ever bigger with London house prices hitting a new all-time high in February.
“Transaction volumes are rising but are still some way off the peak of the market and the lack of supply is helping fuel soaring house prices in parts of the country.”
Today’s figures are the latest in a run of positive data on the housing market.
Earlier this week the Office for National Statistics said house prices rose at their fastest rate for nearly three-and-a-half years during January, while the British Bankers’ Association said mortgage lending was up 47 per cent in February compared with a year earlier.
House prices are being stoked by a combination of rising demand on the back of the improving economy, and a shortage of supply.
Meanwhile the number of people taking their first step on the property ladder has jumped 42 per cent year-on-year, boosted by better mortgage availability and the Government’s Help to Buy scheme.
A total of 22,400 first-time buyers entered the housing market during February, according to LSL Property Services.
They put down average deposits of £25,773, the lowest level for 16 months.
Around 81 per cent of first-time buyers expect house prices to rise in the coming year, with most expecting gains of up to 5 per cent.
“That’s pushing up demand in the short term, which is supporting prices in the long term.”